Case Study for Information Management ??????

1
Case Study for Information Management ??????
Managing Projects JetBlue and WestJet (Chap.
14)
1021CSIM4B14 TLMXB4B (M1824) Tue 2, 3, 4
(910-1200) B502
Min-Yuh Day ??? Assistant Professor ?????? Dept.
of Information Management, Tamkang
University ???? ?????? http//mail.tku.edu.tw/myd
ay/ 2013-12-31
2
???? (Syllabus)

• ?? ?? ??(Subject/Topics)
• 1 102/09/17 Introduction to Case Study for
  Information Management
• 2 102/09/24 Information Systems in Global
  Business UPS (Chap. 1)
• 3 102/10/01 Global E-Business and
  Collaboration NTUC Income
  (Chap. 2)
• 4 102/10/08 Information Systems, Organization,
  and Strategy iPad and
  Apple (Chap. 3)
• 5 102/10/15 IT Infrastructure and Emerging
  Technologies
  Salesforce.com (Chap. 5)
• 6 102/10/22 Foundations of Business
  Intelligence Lego (Chap.
  6)

3
???? (Syllabus)

• ?? ?? ??(Subject/Topics)
• 7 102/10/29 Telecommunications, the
  Internet, and Wireless
  Technology Google, Apple, and Microsoft
  (Chap. 7)
• 8 102/11/05 Securing Information System
  Facebook (Chap. 8)
• 9 102/11/12 Midterm Report (????)
• 10 102/11/19 ?????
• 11 102/11/26 Enterprise Application Border
  States Industries Inc.
  (BSE) (Chap. 9)
• 12 102/12/03 E-commerce Amazon vs. Walmart
  (Chap. 10)

4
???? (Syllabus)

• ?? ?? ??(Subject/Topics)
• 13 102/12/10 Knowledge Management Tata
  Consulting Services
  (Chap. 11) Invited Talk
• 14 102/12/17 Enhancing Decision Making
  CompStat (Chap. 12)
• 15 102/12/24 Building Information Systems
  Electronic Medical
  Records (Chap. 13)
• 16 102/12/31 Managing Projects JetBlue and
  WestJet (Chap. 14)
• 17 103/01/07 Final Report (????)
• 18 103/01/14 ?????

5
Chap. 14 Managing Projects JetBlue and WestJet
6
Case Study JetBlue and WestJet JetBlue and
WestJet A Tale of Two IS Projects (Chap. 14)

• 1. How important is the reservation system at
  airlines such as WestJet and JetBlue? How does it
  impact operational activities and decision
  making?
• 2. Evaluate the key risk factors of the projects
  to upgrade the reservation systems of WestJet and
  JetBlue.
• 3. Classify and describe the problems each
  airline faced in implementing its new reservation
  system. What management, organization, and
  technology factors caused those problems?
• 4. Describe the steps you would have taken to
  control the risk in these projects.

7
Overview of Fundamental MIS Concepts
8
The Importance of Project Management

• CONSEQUENCES OF POOR PROJECT MANAGEMENT

9
Project Management (PM)

• Activities include
• planning work,
• assessing risk,
• estimating resources required,
• organizing the work,
• assigning tasks,
• controlling project execution,
• reporting progress,
• analyzing results.

10
Five major variables of project management

• Scope
• Time
• Cost
• Quality
• Risk

11
MANAGEMENT CONTROL OF SYSTEMS PROJECTS
12
Linking Systems Projects to the Business Plan

• Information Systems Plan
• Identifies systems projects that will deliver
  most business value, links development to
  business plan
• Road map indicating direction of systems
  development, includes
• Purpose of plan
• Strategic business plan rationale
• Current systems/situation
• New developments to consider
• Management strategy
• Implementation plan
• Budget

13
Developing Information Systems Plan

• In order to plan effectively, firms need to
  inventory and document existing software,
  hardware, systems
• To develop effective information systems plan,
  organization must have clear understanding of
  both long-term and short-term information
  requirements
• Strategic analysis or critical success factors
  (CSF) approach
• Sees information requirements as determined by a
  small number of critical success factors
• Auto industry CSFs might include styling,
  quality, cost

14
Critical Success Factors (CSFs)

• Principal method
• Interviews with 3-4 top managers to identify
  goals and resulting CSFs
• Personal CSFs aggregated into small number of
  firm CSFs
• Systems built to deliver information on CSFs
• Suitable for top management, building DSS and ESS
• Disadvantages
• No clear methods for aggregation of CSFs into
  firm CSFs
• Confusion between individual and organizational
  CSFs
• Bias towards top managers

15
USING CSFs TO DEVELOP SYSTEMS
16
A SYSTEM PORTFOLIO
17
Scoring models

• Used to evaluate alternative system projects,
  especially when many criteria exist
• Assigns weights to various features of system and
  calculates weighted totals

CRITERIA WEIGHT SYSTEM A SYSTEM A SCORE SYSTEM B SYSTEM B SCORE
Online order entry 4 67 268 73 292
Customer credit check 3 66 198 59 177
Inventory check 4 72 288 81 324
Warehouse receiving 2 71 142 75 150
ETC
GRAND TOTALS 3128 3300
18
Establishing the Business Value of Information
Systems

• Information system costs and benefits
• Tangible benefits
• Can be quantified and assigned monetary value
• Systems that displace labor and save space
• Transaction and clerical systems
• Intangible benefits
• Cannot be immediately quantified but may lead to
  quantifiable gains in the long run
• E.g., more efficient customer service, enhanced
  decision making
• Systems that influence decision making
• ESS, DSS, collaborative work systems

19
Capital budgeting for information systems

• Capital budgeting models
• Measure value of investing in long-term capital
  investment projects
• Rely on measures the firms
• Cash outflows
• Expenditures for hardware, software, labor
• Cash inflows
• Increased sales
• Reduced costs
• There are various capital budgeting models used
  for IT projects Payback method, accounting rate
  of return on investment, net present value,
  internal rate of return (IRR)

20
Real Options Pricing Models (ROPM)

• Can be used when future revenue streams of IT
  projects are uncertain and up-front costs are
  high
• Use concept of options valuation borrowed from
  financial industry
• Gives managers flexibility to stage IT investment
  or test the waters with small pilot projects or
  prototypes to gain more knowledge about risks
  before investing in entire implementation

21
Limitations of financial models

• Do not take into account social and
  organizational dimensions that may affect costs
  and benefits

22
Managing Project Risk

• Dimensions of project risk
• Level of project risk influenced by
• Project size
• Indicated by cost, time, number of organizational
  units affected
• Organizational complexity also an issue
• Project structure
• Structured, defined requirements run lower risk
• Experience with technology

23
Change management

• Required for successful system building
• New information systems have powerful behavioral
  and organizational impact
• Changes in how information is used often lead to
  new distributions of authority and power
• Internal organizational change breeds resistance
  and opposition

24
The Concept of Implementation

• Implementation
• All organizational activities working toward
  adoption, management, and routinization of an
  innovation
• Change agent One role of systems analyst
• Redefines the configurations, interactions, job
  activities, and power relationships of
  organizational groups
• Catalyst for entire change process
• Responsible for ensuring that all parties
  involved accept changes created by new system

25
The Role of End Users

• Role of end users
• With high levels of user involvement
• System more likely to conform to requirements
• Users more likely to accept system
• User-designer communication gap
• Users and information systems specialists
• Different backgrounds, interests, and priorities
• Different loyalties, priorities, vocabularies
• Different concerns regarding a new system

26
Management support and commitment

• Positive perception by both users and technical
  staff
• Ensures sufficient funding and resources
• Enforcement of required organizational changes

27
Change Management Challenges

• Very high failure rate among enterprise
  application and BPR projects (up to 70 for BPR)
• Poor implementation and change management
  practices
• Employees concerns about change
• Resistance by key managers
• Changing job functions, career paths, recruitment
  practices
• Mergers and acquisitions
• Similarly high failure rate of integration
  projects
• Merging of systems of two companies requires
• Considerable organizational change
• Complex systems projects

28
Controlling Risk Factors

• First step in managing project risk involves
  identifying nature and level of risk of project
• Each project can then be managed with tools and
  risk-management approaches geared to level of
  risk
• Managing technical complexity
• Internal integration tools
• Project leaders with technical and administrative
  experience
• Highly experienced team members
• Frequent team meetings
• Securing of technical experience outside firm if
  necessary

29
A GANTT CHART
30
A GANTT CHART (cont.)
31
A PERT CHART
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Increasing user involvement and overcoming user
resistance

• External integration tools consist of ways to
  link work of implementation team to users at all
  organizational levels
• Active involvement of users
• Implementation teams responsiveness to users
• User resistance to organizational change
• Users may believe change is detrimental to their
  interests
• Counterimplementation Deliberate strategy to
  thwart implementation of an information system or
  an innovation in an organization
• E.g., increased error rates, disruptions,
  turnover, sabotage

33
Strategies to overcome user resistance

• User participation
• User education and training
• Management edicts and policies
• Incentives for cooperation
• Improvement of end-user interface
• Resolution of organizational problems prior to
  introduction of new system

34
Designing for the Organization

• Information system projects must address ways in
  which organization changes with new system
• Procedural changes
• Job functions
• Organizational structure
• Power relationships
• Work structure
• Ergonomics Interaction of people and machines in
  work environment
• Design of jobs
• Health issues
• End-user interfaces

35
Designing for the Organization

• Organizational impact analysis
• How system will affect organizational structure,
  attitudes, decision making, operations
• Sociotechnical design
• Addresses human and organizational issues
• Separate sets of technical and social design
  solutions
• Final design is solution that best meets both
  technical and social objectives

36
Project Management Software

• Can automate many aspects of project management
• Capabilities for
• Defining, ordering, editing tasks
• Assigning resources to tasks
• Tracking progress
• Microsoft Project 2010
• Most widely used project management software
• PERT, Gantt Charts, critical path analysis
• Increase in SaaS, open-source project management
  software

37
2014/01/07 Final Report (????)

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  ??,??cc ????) ?
• 1. ??????? ppt (????????? ppt) ???
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• 2. ?????? (1) ??????.ppt (2) ??????????.pdf
  (3) ???????.doc ????
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38
?????? (Case Study for Information Management)

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39
References

• Kenneth C. Laudon Jane P. Laudon (2012),
  Management Information Systems Managing the
  Digital Firm, Twelfth Edition, Pearson.
• ??? ? (2011),??????-???????,?12?,????